{"id":29579,"date":"2025-08-02T01:28:52","date_gmt":"2025-08-01T19:58:52","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=29579"},"modified":"2025-09-04T00:08:18","modified_gmt":"2025-09-03T18:38:18","slug":"default-regime-is-new-regime-for-itr-filing","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/default-regime-is-new-regime-for-itr-filing\/","title":{"rendered":"Default Regime is New Regime for ITR Filing"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69e884db3c871\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69e884db3c871\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/default-regime-is-new-regime-for-itr-filing\/#The_default_regime_is_the_new_regime_for_ITR_filing\" title=\"The default regime is the new regime for ITR filing.\">The default regime is the new regime for ITR filing.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/default-regime-is-new-regime-for-itr-filing\/#Comparison_of_Income_Tax_Slabs_under_Old_Tax_Regime_New_Tax_Regime_for_FY_2024%E2%80%9325\" title=\"Comparison of Income Tax Slabs under Old Tax Regime, New Tax Regime for FY 2024\u201325\">Comparison of Income Tax Slabs under Old Tax Regime, New Tax Regime for FY 2024\u201325<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/default-regime-is-new-regime-for-itr-filing\/#Old_Tax_Regime_Individual_below_60_years\" title=\"Old Tax Regime (Individual below 60 years)\">Old Tax Regime (Individual below 60 years)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/default-regime-is-new-regime-for-itr-filing\/#New_Tax_Regime_%E2%80%93_FY_2024%E2%80%9325_AY_2025%E2%80%9326\" title=\"New Tax Regime \u2013 FY 2024\u201325 (AY 2025\u201326)\">New Tax Regime \u2013 FY 2024\u201325 (AY 2025\u201326)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/default-regime-is-new-regime-for-itr-filing\/#New_Tax_Regime_%E2%80%93_FY_2025%E2%80%9326_Further_Revised_Slabs\" title=\"New Tax Regime \u2013 FY 2025\u201326 (Further Revised Slabs)\">New Tax Regime \u2013 FY 2025\u201326 (Further Revised Slabs)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/default-regime-is-new-regime-for-itr-filing\/#Surcharge_Rates_All_Regimes\" title=\"Surcharge Rates (All Regimes)\">Surcharge Rates (All Regimes)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/default-regime-is-new-regime-for-itr-filing\/#General_Comparison_%E2%80%93_FY_2025%E2%80%9326_vs_FY_2024%E2%80%9325\" title=\"General Comparison \u2013 FY 2025\u201326 vs. FY 2024\u201325\">General Comparison \u2013 FY 2025\u201326 vs. FY 2024\u201325<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/default-regime-is-new-regime-for-itr-filing\/#_AllowancesDeductions_Available_in_New_Regime\" title=\"\u00a0Allowances\/Deductions Available in New Regime\">\u00a0Allowances\/Deductions Available in New Regime<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-26470\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/04\/Overview-about-Income-Tax-Form-10IE-Form-10IEA.png\" alt=\"Form 10IE &amp; Form 10IEA.\" width=\"1280\" height=\"720\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/04\/Overview-about-Income-Tax-Form-10IE-Form-10IEA.png 1280w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/04\/Overview-about-Income-Tax-Form-10IE-Form-10IEA-300x169.png 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/04\/Overview-about-Income-Tax-Form-10IE-Form-10IEA-1024x576.png 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/04\/Overview-about-Income-Tax-Form-10IE-Form-10IEA-768x432.png 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/04\/Overview-about-Income-Tax-Form-10IE-Form-10IEA-800x450.png 800w\" sizes=\"(max-width: 1280px) 100vw, 1280px\" \/><\/h2>\n<h2><span class=\"ez-toc-section\" id=\"The_default_regime_is_the_new_regime_for_ITR_filing\"><\/span><span style=\"color: #000080;\"><strong>The default regime is the new regime for ITR filing.<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Default Regime for ITR Filing: The new tax regime is the default for all taxpayers (as per the Finance Act, 2023). Form 10IEA Filing Requirements (AY 2024\u201325 onwards)<\/p>\n<table>\n<thead>\n<tr>\n<td>ITR Form<\/td>\n<td>Requirement to file Form 10IEA<\/td>\n<td>Switching Between Regimes<\/td>\n<td>Notes<\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>ITR-1<\/td>\n<td>\u00a0Not required<\/td>\n<td>Allowed every year<\/td>\n<td>No restrictions<\/td>\n<\/tr>\n<tr>\n<td>ITR-2<\/td>\n<td>\u00a0Not required<\/td>\n<td>Allowed every year<\/td>\n<td>No restrictions<\/td>\n<\/tr>\n<tr>\n<td>ITR-3<\/td>\n<td>Mandatory if opting for Old Regime<\/td>\n<td>One-time switch allowed<\/td>\n<td>Must file Form 10IEA: &lt;ul&gt;&lt;li&gt;Once to opt Old Regime&lt;\/li&gt;&lt;li&gt;Once again to revert to New Regime&lt;\/li&gt;&lt;\/ul&gt; After that, you&#8217;re locked into the New Regime permanently.<\/td>\n<\/tr>\n<tr>\n<td>ITR-4<\/td>\n<td>Mandatory if opting for Old Regime<\/td>\n<td>One-time switch allowed<\/td>\n<td>Same rules as ITR-3. Carefully decide before filing.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>ITR 3 &#8211; Form 10IEA Filing is mandatory when opting for old regime and if opting again for New Regime in subsequent Year. if opted old regime for one year and then opted for new regime in subsequent year then not eligible to opt old regime again means one time switching option is there. Need to file Form 10IEA a maximum of 2 times only, first when you opt for old regime and Second when you opt for new regime in a subsequent year and leave old regime . If Form 10IEA already filed for old regime for a particular year, then the new regime can&#8217;t be opted for in such year and vice versa.<\/p>\n<p>ITR 4 &#8211; Form 10IEA Filing mandatory when opting for old regime and if opting again for New Regime in subsequent Year, if opted old regime for one year and then opted for new regime in subsequent year then not eligible to opt old regime again means one time Switching options are there. You need to file Form 10IEA a maximum of 2 times only, First when you opt for old regime and Second when you opt for new regime in subsequent year and leaving old regime. If Form 10IEA already filed for old regime for a particular year then cant opt new regime in such year and vice versa.<\/p>\n<p>Once Form 10IEA is filed for a particular assessment year, you cannot revise or change the regime for that year. Taxpayers filing ITR-3 or ITR-4 must think twice before filing Form 10IEA, as switching is allowed only once under Section 115BAC(6).<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Comparison_of_Income_Tax_Slabs_under_Old_Tax_Regime_New_Tax_Regime_for_FY_2024%E2%80%9325\"><\/span><span style=\"color: #000080;\"><strong>Comparison of Income Tax Slabs under Old Tax Regime, New Tax Regime for FY 2024\u201325<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-29581\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/08\/Slab-.jpg\" alt=\"Slab\" width=\"937\" height=\"1280\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/08\/Slab-.jpg 937w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/08\/Slab--220x300.jpg 220w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/08\/Slab--750x1024.jpg 750w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/08\/Slab--768x1049.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/08\/Slab--800x1093.jpg 800w\" sizes=\"(max-width: 937px) 100vw, 937px\" \/><\/p>\n<p>Key insights include a comparison of income tax slabs under the old tax regime, the new tax regime for FY 2024\u201325 (AY 2025\u201326), and the revised new tax regime for FY 2025\u201326, along with surcharge rates across all regimes.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Old_Tax_Regime_Individual_below_60_years\"><\/span><span style=\"color: #000080;\"><strong>Old Tax Regime (Individual below 60 years)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table style=\"height: 335px;\" width=\"799\">\n<thead>\n<tr>\n<td><strong>Income Slab (INR )<\/strong><\/td>\n<td><strong>Tax Rate<\/strong><\/td>\n<td><strong>Tax Amount<\/strong><\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Up to INR 2,50,000<\/td>\n<td>NIL<\/td>\n<td>INR 0<\/td>\n<\/tr>\n<tr>\n<td>INR 2,50,001 \u2013 INR 5,00,000<\/td>\n<td>5%<\/td>\n<td>INR 12,500<\/td>\n<\/tr>\n<tr>\n<td>INR 5,00,001 \u2013 INR 10,00,000<\/td>\n<td>20%<\/td>\n<td>INR 1,00,000<\/td>\n<\/tr>\n<tr>\n<td>Above INR 10,00,000<\/td>\n<td>30%<\/td>\n<td>&#8211;<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Rebate under Section 87A if total income \u2264 INR 5,00,000 &amp; Deductions allowed under 80C, 80D, HRA, LTA, etc.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"New_Tax_Regime_%E2%80%93_FY_2024%E2%80%9325_AY_2025%E2%80%9326\"><\/span><span style=\"color: #000080;\"><strong>New Tax Regime \u2013 FY 2024\u201325 (AY 2025\u201326)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table style=\"height: 432px;\" width=\"828\">\n<thead>\n<tr>\n<td><strong>Income Slab (INR )<\/strong><\/td>\n<td><strong>Tax Rate<\/strong><\/td>\n<td><strong>Tax Amount<\/strong><\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Up to INR 3,00,000<\/td>\n<td>NIL<\/td>\n<td>INR 0<\/td>\n<\/tr>\n<tr>\n<td>INR 3,00,001 \u2013 INR 7,00,000<\/td>\n<td>5%<\/td>\n<td>INR 20,000<\/td>\n<\/tr>\n<tr>\n<td>INR 7,00,001 \u2013 INR 10,00,000<\/td>\n<td>10%<\/td>\n<td>INR 30,000<\/td>\n<\/tr>\n<tr>\n<td>INR 10,00,001 \u2013 INR 12,00,000<\/td>\n<td>15%<\/td>\n<td>INR 30,000<\/td>\n<\/tr>\n<tr>\n<td>INR 12,00,001 \u2013 INR 15,00,000<\/td>\n<td>20%<\/td>\n<td>INR 60,000<\/td>\n<\/tr>\n<tr>\n<td>Above INR 15,00,000<\/td>\n<td>30%<\/td>\n<td>&#8211;<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Rebate under Section 87A if total income \u2264 INR 7,00,000 &amp; Most deductions not allowed (except standard deduction and NPS)<\/p>\n<h3><span class=\"ez-toc-section\" id=\"New_Tax_Regime_%E2%80%93_FY_2025%E2%80%9326_Further_Revised_Slabs\"><\/span><span style=\"color: #000080;\"><strong>New Tax Regime \u2013 FY 2025\u201326 <em>(Further Revised Slabs)<\/em><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table style=\"height: 531px;\" width=\"798\">\n<thead>\n<tr>\n<td><strong>Income Slab (INR )<\/strong><\/td>\n<td><strong>Tax Rate<\/strong><\/td>\n<td><strong>Tax Amount<\/strong><\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Up to INR 4,00,000<\/td>\n<td>NIL<\/td>\n<td>INR 0<\/td>\n<\/tr>\n<tr>\n<td>INR 4,00,001 \u2013 INR 8,00,000<\/td>\n<td>5%<\/td>\n<td>INR 20,000<\/td>\n<\/tr>\n<tr>\n<td>INR 8,00,001 \u2013 INR 12,00,000<\/td>\n<td>10%<\/td>\n<td>INR 40,000<\/td>\n<\/tr>\n<tr>\n<td>INR 12,00,001 \u2013 INR 16,00,000<\/td>\n<td>15%<\/td>\n<td>INR 60,000<\/td>\n<\/tr>\n<tr>\n<td>INR 16,00,001 \u2013 INR 20,00,000<\/td>\n<td>20%<\/td>\n<td>INR 80,000<\/td>\n<\/tr>\n<tr>\n<td>INR 20,00,001 \u2013 INR 24,00,000<\/td>\n<td>25%<\/td>\n<td>INR 1,00,000<\/td>\n<\/tr>\n<tr>\n<td>Above INR 24,00,000<\/td>\n<td>30%<\/td>\n<td>&#8211;<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Rebate under Section 87A if total income \u2264 INR 12,00,000 (as per latest update)<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Surcharge_Rates_All_Regimes\"><\/span><span style=\"color: #000080;\"><strong>Surcharge Rates (All Regimes)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table style=\"height: 381px;\" width=\"804\">\n<thead>\n<tr>\n<td>Total Income (INR )<\/td>\n<td>Surcharge Rate<\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>INR 50,00,001 \u2013 INR 1 crore<\/td>\n<td>10%<\/td>\n<\/tr>\n<tr>\n<td>INR 1 crore \u2013 INR 2 crore<\/td>\n<td>15%<\/td>\n<\/tr>\n<tr>\n<td>INR 2 crore \u2013 INR 5 crore<\/td>\n<td>25% <em>(Old Regime only)<\/em><\/td>\n<\/tr>\n<tr>\n<td>Above INR 5 crore<\/td>\n<td>37% <em>(Old Regime only)<\/em><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<ul>\n<li><strong>U<\/strong>nder the new regime, maximum surcharge is capped at 25% &amp; Health &amp; Education Cess: 4% on total tax + surcharge<\/li>\n<li>New Regime (FY 2025\u201326) offers: More granular tax slabs, a higher Section 87A rebate limit (INR 12 lakh), and still no major deductions allowed, but better net tax for many<\/li>\n<li>The old regime is still useful for those with Large deductions under 80C\/80D\/HRA, etc., and lower net taxable income post deductions<\/li>\n<li>High-income individuals benefit under the new regime due to the surcharge cap at 25% (vs 37% in the old regime for income above INR 5 crore).<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"General_Comparison_%E2%80%93_FY_2025%E2%80%9326_vs_FY_2024%E2%80%9325\"><\/span><span style=\"color: #000080;\"><strong>General Comparison \u2013 FY 2025\u201326 vs. FY 2024\u201325<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-29582\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/08\/all.jpg\" alt=\"General Comparison \u2013 FY 2025\u201326 vs. FY 2024\u201325\" width=\"1029\" height=\"1155\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/08\/all.jpg 1029w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/08\/all-267x300.jpg 267w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/08\/all-912x1024.jpg 912w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/08\/all-768x862.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/08\/all-800x898.jpg 800w\" sizes=\"(max-width: 1029px) 100vw, 1029px\" \/><\/p>\n<table style=\"height: 357px;\" width=\"874\">\n<thead>\n<tr>\n<td>Feature<\/td>\n<td>FY 2025\u201326<\/td>\n<td>FY 2024\u201325<\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Rebate Eligibility (Sec 87A)<\/td>\n<td>INR 12,00,000<\/td>\n<td>INR 7,00,000<\/td>\n<\/tr>\n<tr>\n<td>Standard Deduction<\/td>\n<td>INR 75,000 (salaried)<br \/>\nINR 25,000 (pensioners)<\/td>\n<td>INR 75,000 (salaried)<\/td>\n<\/tr>\n<tr>\n<td>Effective Tax-Free Salary<\/td>\n<td>INR 12,75,000<\/td>\n<td>INR 7,75,000<\/td>\n<\/tr>\n<tr>\n<td>Rebate Amount (u\/s 87A)<\/td>\n<td>INR 60,000<\/td>\n<td>INR 25,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"_AllowancesDeductions_Available_in_New_Regime\"><\/span><strong>\u00a0<\/strong><span style=\"color: #000080;\"><strong>Allowances\/Deductions Available in New Regime<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table style=\"height: 1698px;\" width=\"877\">\n<thead>\n<tr>\n<td>Exemption \/ Deduction<\/td>\n<td>FY 2025\u201326<\/td>\n<td>FY 2024\u201325<\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>HRA Exemption<\/td>\n<td>\u274c<\/td>\n<td>\u274c<\/td>\n<\/tr>\n<tr>\n<td>Leave Travel Allowance (LTA)<\/td>\n<td>\u274c<\/td>\n<td>\u274c<\/td>\n<\/tr>\n<tr>\n<td>Food Allowance<\/td>\n<td>\u274c<\/td>\n<td>\u274c<\/td>\n<\/tr>\n<tr>\n<td>30% Additional Employee Cost (80JJAA)<\/td>\n<td>\u274c<\/td>\n<td>\u274c<\/td>\n<\/tr>\n<tr>\n<td>Entertainment &amp; Prof. Tax<\/td>\n<td>\u274c<\/td>\n<td>\u274c<\/td>\n<\/tr>\n<tr>\n<td>Perquisites for Official Purposes<\/td>\n<td>\u274c<\/td>\n<td>\u2705<\/td>\n<\/tr>\n<tr>\n<td>Home Loan Interest (Self-occupied)<\/td>\n<td>\u274c<\/td>\n<td>\u274c<\/td>\n<\/tr>\n<tr>\n<td>Home Loan Interest (Let-out)<\/td>\n<td>\u2705<\/td>\n<td>\u2705<\/td>\n<\/tr>\n<tr>\n<td>Section 80C (LIC, PPF, etc.)<\/td>\n<td>\u274c<\/td>\n<td>\u274c<\/td>\n<\/tr>\n<tr>\n<td>Employee\u2019s NPS Contribution<\/td>\n<td>\u274c<\/td>\n<td>\u274c<\/td>\n<\/tr>\n<tr>\n<td>Employer\u2019s NPS Contribution<\/td>\n<td>\u2705 (14% for all employees)<\/td>\n<td>\u2705 (14% for all employees)<\/td>\n<\/tr>\n<tr>\n<td>Medical Insurance \u2013 80D<\/td>\n<td>\u274c<\/td>\n<td>\u274c<\/td>\n<\/tr>\n<tr>\n<td>Disabled Individual \u2013 80U<\/td>\n<td>\u274c<\/td>\n<td>\u274c<\/td>\n<\/tr>\n<tr>\n<td>Education Loan \u2013 80E<\/td>\n<td>\u274c<\/td>\n<td>\u274c<\/td>\n<\/tr>\n<tr>\n<td>EV Loan \u2013 80EEB<\/td>\n<td>\u274c<\/td>\n<td>\u274c<\/td>\n<\/tr>\n<tr>\n<td>Donation \u2013 80G<\/td>\n<td>\u274c<\/td>\n<td>\u274c<\/td>\n<\/tr>\n<tr>\n<td>Savings Interest \u2013 80TTA\/TTB<\/td>\n<td>\u274c<\/td>\n<td>\u274c<\/td>\n<\/tr>\n<tr>\n<td>Other Chapter VI-A deductions<\/td>\n<td>\u274c<\/td>\n<td>\u274c<\/td>\n<\/tr>\n<tr>\n<td>Family Pension Deduction<\/td>\n<td>\u274c<\/td>\n<td>\u274c<\/td>\n<\/tr>\n<tr>\n<td>Gifts up to INR 5,000<\/td>\n<td>\u2705<\/td>\n<td>\u2705<\/td>\n<\/tr>\n<tr>\n<td>VRS Exemption \u2013 10(10C)<\/td>\n<td>\u2705<\/td>\n<td>\u2705<\/td>\n<\/tr>\n<tr>\n<td>Gratuity Exemption \u2013 10(10)<\/td>\n<td>\u2705<\/td>\n<td>\u2705<\/td>\n<\/tr>\n<tr>\n<td>Leave Encashment \u2013 10(10AA)<\/td>\n<td>\u2705<\/td>\n<td>\u2705<\/td>\n<\/tr>\n<tr>\n<td>Daily Allowance<\/td>\n<td>\u2705<\/td>\n<td>\u2705<\/td>\n<\/tr>\n<tr>\n<td>Transport for specially-abled<\/td>\n<td>\u2705<\/td>\n<td>\u2705<\/td>\n<\/tr>\n<tr>\n<td>Conveyance Allowance<\/td>\n<td>\u2705<\/td>\n<td>\u2705<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<ul>\n<li>Highlights for FY 2025\u201326: Significant rebate hike under Section 87A (INR 12 lakh threshold) &amp; Most Chapter VI-A deductions remain disallowed.<\/li>\n<li>Greater scope for non-taxable reimbursements (like conveyance and daily allowance) &amp; Still no relief for HRA, LTA, 80C, or 80D in the New Regime<\/li>\n<li><strong>Leave Encashment rules after retirement or resignation as per Section 10(10AA) : <\/strong>In case Central\/State Government Employees : Leave Encashment received at retirement\/resignation Then Fully Exempt from Income Tax. Then No limit on the exemption.In case Non-Government \/ Private Sector Employees : Leave encashment received at retirement or resignation is partly exempt. Exemption is available under Section 10(10AA)(ii). New Limit (Budget 2023) Earlier: INR 3,00,000 (fixed since 2002) &amp; Now: INR 25,00,000 (effective AY 2023-24 onwards).<\/li>\n<li>Any excess over the exemption is taxable as salary income. \u00a0Exemption Calculation (Least of the following is exempt):\n<ul>\n<li>Cash equivalent of leave standing to the credit of the employee (earned leave balance \u00d7 average salary of last 10 months).<\/li>\n<li>10 months\u2019 average salary (based on last 10 months\u2019 basic salary + DA + commission if fixed % of turnover).<\/li>\n<li>Amount actually received as leave encashment.<\/li>\n<li>Statutory limit \u2013 INR 25,00,000 (after Budget 2023).<\/li>\n<\/ul>\n<p>In Case of Death of Employee : If an employee dies before availing leave encashment. Payment to legal heirs is fully exempt from tax, regardless of employer (Govt. or private). In Summary<\/p>\n<ul>\n<li>Govt employees Then Full exemption.<\/li>\n<li>Private employees then Exemption up to INR 25 lakh (least of 4 conditions).<\/li>\n<li>On death then Fully exempt for legal heirs.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>The default regime is the new regime for ITR filing. Default Regime for ITR Filing: The new tax regime is the default for all taxpayers (as per the Finance Act, 2023). Form 10IEA Filing Requirements (AY 2024\u201325 onwards) ITR Form Requirement to file Form 10IEA Switching Between Regimes Notes ITR-1 \u00a0Not required Allowed every year &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[150],"tags":[10266],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/29579"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=29579"}],"version-history":[{"count":4,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/29579\/revisions"}],"predecessor-version":[{"id":29812,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/29579\/revisions\/29812"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=29579"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=29579"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=29579"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}